Arçelik A.Ş. Extends
Joint Venture Agreement
with LG Electronics Inc.

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Arçelik A.Ş. announced the extension of its Joint Venture agreement with LG Electronics, Inc until December 31, 2023. During the new partnership period, Arçelik-LG will add Commercial Air Conditioning products (CACs) to its current production of Room Air Conditioning products (RACs).

Fatih Ebiçlioğlu, Koç Holding President of Consumer Durables Group, stated:  "Arçelik-LG is Turkey's first and largest integrated air conditioner production facility and has a production capacity of 1.5 million units of room air conditioners. Our cooperation in this joint venture, which has the largest air conditioner production facility in the Near East and Europe, has been ongoing for 17 years. We are more than pleased to continue this cooperation, which is one of the best examples of our strategic partnerships."

Arçelik A.Ş. CEO Hakan Bulgurlu stated: “With the investments to be made in the upcoming period, Arçelik-LG will start to produce products suitable for the commercial air conditioning market, which is expected to grow in addition to the room air conditioners it currently produces. In this way, the company will provide products to construction projects abroad in select regions and also meet the growing demand in the Turkish market.

A new Joint Venture Agreement has been signed among Arçelik A.Ş, Koç Holding and LG Electronics, Inc. regarding the management and operations of the joint venture Arçelik-LG Klima Sanayi ve Ticaret A.Ş. (Arçelik-LG). New agreement will be effective until December 31st, 2023.

Fatih Ebiçlioğlu, Koç Holding President of Consumer Durables Group, when commenting on the subject, emphasized that they are acting in line with their growth and development goals as they put Arçelik A.Ş.'s strategies into practice. Ebiçlioğlu said that Arçelik A.Ş. attaches great importance to developing strategic business partnerships with the potential of creating additional added value and synergy, examples of which include sharing technology and market resources, transferring know-how, and creating new technologies, effective capacity utilization, flexibility and optimal risk management as well as additional products, markets and a diversity of distribution channels.

"Arçelik-LG is Turkey's first and largest integrated air conditioner production facility and has a production capacity of 1.5 million units of room air conditioners. Our cooperation in this venture, which has the largest air conditioner production facility in the Near East and Europe, has been ongoing for 17 years. We are beyond pleased to continue this cooperation, which constitutes one of the best examples of our strategic partnerships." Ebiçlioğlu added.

Hakan Bulgurlu, the CEO of Arçelik A.Ş., said:

"We signed a new joint venture agreement that focuses on Arçelik-LG's management and operations, which will both continue and strengthen our partnership. With the investments to be made in the upcoming period, Arçelik-LG will start to produce products suitable for the commercial air conditioning market, which is expected to grow in addition to the room air conditioners it currently produces. In this way, the company will provide products to construction projects abroad in select regions and also meet the growing demand in the Turkish market. Moreover, based on the agreement made with LG Electronics, Inc, Arçelik A.Ş. will obtain the exclusive rights to sell LG branded commercial air conditioners in Turkey, excluding single CAC products”.

Arçelik A.Ş. expects to make its flexible production structure more energy efficient with higher value-added and innovative products aimed at satisfying customer needs for Arçelik-LG room air conditioners in the coming period. It aims to make the company reach a place where it can develop its own technology and offer more competitive products by taking advantage of LG's know-how of technology and of the industry.

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